Photo: Transocean Norge; Source: Transocean

Transocean rig to drill 17 wells for 2 oil and gas operators

Two oil and gas companies with operations in Norway, OMV and Wintershall Dea, have awarded a drilling contract to a Transocean-owned semi-submersible rig to drill 17 wells and all firm and additional potential wells in the period from 2023 to 2027.

OMV and Wintershall Dea have awarded a rig contract for the use of Transocean Norge for 17 wells. Out of these 17, 11 will be for Wintershall Dea and 6 for OMV. At the same time, the two companies have entered into an exclusive partnership with Transocean for the use of this rig for the drilling of all firm and additional potential wells in the period 2023 to 2027.

“This long-term contract is an important milestone in the execution of the Berling development project. In addition, we have secured a rig to one of our upcoming firm exploration wells and other potential wells to come,” said General Manager Knut Mauseth in OMV Norge.

Namely, the Transocean Norge will drill the Velocette exploration well located in PL 1016 in the Norwegian Sea where OMV Norge is the operator. The well is expected to be drilled in 3Q 2023, according to an update on Thursday by OMV’s partner in this well, Longboat Energy.

As explained by the companies, the objective of the rig collaboration between OMV and Wintershall Dea is to increase operational efficiency by taking advantage of the joint competence and related synergy effects in a strategic partnership. The partnership, amongst others, includes a shared rig intake process, shared 3rd party services, and onshore supply base and logistics.

“Securing the “Transocean Norge” means we have a modern and fit for purpose rig with a best-in-class emission footprint – and a drilling partner to support our continued growth on the Norwegian Continental Shelf,” said Michael Zechner, Wintershall Dea Norge Managing Director.

The contract scope for OMV entails the drilling of three development wells for the Berling project (Iris Hades) and two exploration wells and one optional slot. For Wintershall Dea the drilling of four exploration wells, four development wells for the Maria Revitalisation project, and three development wells at Dvalin North.

Transocean said in a separate statement on Thursday that the current firm term for the rig is currently 208 days, which contributes approximately $72 million to the backlog. Assuming that all approvals are received, the full contract period is 1,071 days at an average dayrate of $408,000 which would contribute $437 million in backlog, excluding bonuses and additional services.

Transocean Norge is a sixth-generation drilling rig with a hybrid energy solution and digital optimization of power distribution. The rig is well fitted for planned exploration and development operations on the Norwegian Continental Shelf, including HPHT and shallow water depths.

The contract period includes options to drill additional operated wells and incentives to reward the rig contractor for safe and efficient operations.

OMV is currently drilling the Oswig exploration well in the North Sea offshore Norway, using the Maersk Intrepid jack-up rig. The company has also recently contracted the Deepsea Yantai semi-submersible rig for operations in the North Sea. The rig will be used to drill one firm well “Eirik” in PL 817 in the North Sea, plus one optional well in 2023 or 2024.